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One of the two North Slope gas pipeline projects plans to apply for a key federal certificate more than a year later than previously expected.
The Denali project is delaying its submittal of a Federal Energy Regulatory Commission application. Denali, a joint project of North Slope oil companies BP and Conoco Phillips, told FERC in a status report this month that the company now plans to apply for a certificate of public convenience and necessity in October 2012 rather than the original target date of August 2011. FERC is a key regulator of gas pipelines and its certificate is needed for the multibillion-dollar project to proceed. Denali spokesman Dave MacDowell said the company remains committed to holding an "open season" in 2010. An open season is when pipeline owners ask natural gas producers to commit to shipping their gas through the pipeline. Such commitments are needed to get FERC's blessing for a project. The filing target for the FERC certificate was pushed back to "allow for a full 2010 and 2011 field survey as needed" to support the certificate filing, MacDowell said. The October 2012 date is the same as the target set by TransCanada Corp., which is pursuing a rival project backed by Exxon Mobil, which holds the largest North Slope gas reserves. TransCanada said it plans to hold its open season next July. The backers of both projects are spending tens of millions of dollars this year refining their projects and trying to nail down cost estimates. Both projects, as conceived, would parallel the trans-Alaska oil pipeline to Delta Junction, then track the Alaska Highway into Canada to Alberta. A pipeline is needed to unlock the North Slope's huge reservoirs of natural gas. The gas was discovered with the oil there, but lack of a multibillion-dollar pipeline system has kept the gas locked on the Slope.